Question 3 (32 Marks) This information below appeared in the books of Peter and Paul on 31 March 2019 on 31 March 2019. The partners share profit and losses in the ratio of 2:1. ASSETS NS 80 000 40 000 Goodwill Machinery Furniture Vehicles Inventories Accounts receivable EQUITY & LIABILITIES N$ 1 000 Capital: 21 500 Peter 5 000 Paul 9 000 Current account: 58 000 Peter 69 500 Current liabilities: Bank overdraft Accounts payable 164 000 1 4000 9 400 30 600 164 000 On 31 March 2019, the partners decided to dissolve the partnership and to sell its assets to Diamond Ltd for N$ 150 000 1. All liabilities were settled by the partnership 2. Payables were paid by cheque, N$ 30 000 3. Dissolution cost was paid by cheque, N$ 100 4. Diamond Ltd paid the purchase price by issuing 12 000 fully paid shares of N$ 10 each to the partners and the difference in cash. 5. The partners to divide the shares in their profit-sharing ratios. Cash must be paid in or withdrawn by the partners so that their capital accounts close. You are required to: Prepare the following ledger accounts to show the dissolution of the partnership: 1. Bank account (7 marks) 2. Realisation account (12 marks) 3. Capital accounts of Peter and Paul (9 marks) 4. Diamond Ltd's account (4 marks)